One of the biggest challenges businesses faced in 2022 was finding and keeping skilled workers to fill necessary positions. And, unfortunately, this trend is likely to extend into 2023 and beyond, according to over 1,300 C-suite executives surveyed in a recent Protiviti study.
In their desire to attract candidates, employers are bearing an unintended financial burden – the cost of vacancies. If you want to know exactly how much your vacancies are costing you, the Society for Human Resource Management (SRHM) has a formula, but they found the average vacancy costs roughly $4,100 over the typical 42-day time-to-hire across all industries.
This challenge is coupled with a talent pool that has the luxury of being selective about their job prospects – is it any wonder that organizations are spending a lot of time, money, and resources to attract talent? With so much energy spent on finding talent, many employers have de-emphasized other areas.
The most notable being onboarding.
Approximately 35% of companies invest nothing into onboarding. Why invest to hire if there is no or little effort into successfully integrating that hire into your organization? Consider this, the majority of turnover happens within the first year – up to 20% in the first 45 days and another 31% before the 6-month mark.
Keep in mind, one of the most significant challenges facing employers is finding AND keeping employees. To fill the talent gap, many organizations are reskilling employees to fill key roles. And while that may help bolster retention numbers, too many are forgetting that retention starts on day one.
An effective onboarding program not only benefits the incoming team member, but also helps a company’s bottom line. Employees are 69% more likely to stay with a company if they had a good onboarding experience. And 78% of employers who invest in onboarding see increased revenues.
Whether you’re looking to enhance and improve your existing onboarding program or start one for the first time, you’re going to need to know the latest trends. Here are three you need to be familiar with as we head into 2023.